Since the previous month’s market drop, gloomy views have dominated the cryptocurrency world, which is presently in a consolidation period. The cryptocurrency market has dropped 4% of its market cap in the last 24 hours, dipping below $1.5 trillion for a brief moment. The cryptocurrency market is cooling off, according to major on-chain measures and market indicators, as trade has decreased.
Stablecoin inflows on platforms are an important on-chain statistic for tracking market sentiment; the higher the inflows, the more individuals are purchasing and transferring stablecoin into platforms. Previously, USDT inflows fell to a historic 5-month low.
Aside from a drop in stablecoin inflow on cryptocurrency platforms, trade volume has also dropped to a new weekly low, showing an increasing gloomy attitude.
Will the cryptocurrency market experience another downturn?
Profitable Ethereum wallets hit a new monthly low, accompanied by a large drop in ETH miners’ mining earnings, which fell to an 11-month low.
Bitcoin is going to create a death cross in the next weeks, and in order to escape it, BTC has to gain roughly $1,500 each day to delay the negative event. A death cross is considered a strong negative indicator, and if it happens, experts forecast a price drop to $20,000. A death cross might potentially force BTC into a bearish trend, something it has managed to avoid thus far.
Bitcoin’s value plummeted to $34,723 today, breaking out of a major triangle formation, but it quickly rebounded and is now trading at $35,679. The acceptance of Bitcoin in El Salvador, backed by the news of a volcano bitcoin mining setting, failed to boost the price past a major resistance level of $40,000.
The weekend sell-off has established a pattern in recent weeks, and BTC would need to break above the $40K mark to prevent another probable fall.